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Opcion, Año 35, Especial Nº 21 (2019):2899-2921ISSN 1012-1587/ISSNe: 2477-9385Rough-Cut Capacity Planning By Using the Overall Planning Factors Method: An Applied Study in the LeatherClothes Factory / Textile and Leather Industries CompanyAssistant Professor Dr. Zahra Abd MohammedMustansiriyah University/College of Administration and EconomicsDepartment of Business Administration/ Baghdad-Iraqzahra abd@uomustansiriyah.edu.iqAbstractMost Iraqi industrial companies and factories suffer from a weakness in thecapacity planning process because of their lack of reliance on scientific foundations in the rough-cut capacity planning process. One of those methods isthe overall planning factors method. The research problem focused on explaining how overall Planning factors are used in the rough-cut capacity planning; therefore, the aim of the research is to apply the overall factors in therough-cut capacity planning through preparing logical steps for the rough-cutcapacity planning process by using overall Planning factors. To implement thesteps, the mathematical equations have been formulated so that the steps andequations can be used usefully in many industrial companies, and determinedthe capacity needs for both direct labor time, machine time and for each typeof product and the time periods that are specified, as well as determined thecapacity needs of each of the work centers. For the purpose of applying theresearch, the leather garment factory affiliated to the Textile and Leather Industries Company was chosen which produces four types of leather garment(men’s jacket, men’s vest, women’s jacket, and women’s coat). The researcherconducted many field visits and interviews to obtain the main data of scheduling the production as well as historical data related to production quantitiesand times related to the direct labor and machine and for each type of product.The research concluded that the management of the leather garment factory isnot accomplishing the preparation of the master production scheduling accurately, and also not using any scientific method in the rough-cut capacity planning. The research also concluded that the process of manufacturing leathergarment depends on the direct labor times, which ratio reached to (0.69),

Zahra Abd Mohammed2900Opcion, Año 35, Especial Nº 21 (2019): 2899-2921while the machine times reached (0.31). Therefore, the research recommends for preparing the master production scheduling accurately, as wellas relying on the overall Planning factors in the rough-cut capacity planning, and finally the use of the tailor-made machines in the tailor-madecenter which will help reducing the required time to implement the tailor-made process and thus it reduces the manufacturing time.Key words: Master Production Scheduling, Capacity, Capacity Planning ,Rough-Cut Capacity Planning, Overall Planning Factors.lanificaci n de la capacidad de corte spero medianteel m todo de factores de planificaci n general un estudio aplicado en la f brica de ropa de cuero Textil andLeather Industries ompanyResumenLa mayoría de las empresas y fábricas industriales iraquíes sufren de debilidad en el proceso de planificación de la capacidad debido a su falta deconfianza en los fundamentos científicos en el proceso de planificación dela capacidad general. Uno de esos métodos es el método de factores deplanificación general. El problema de investigación se centró en explicarcómo se utilizan los factores de planificación generales en la planificacióngeneral de la capacidad; por lo tanto, el objetivo de la investigación esaplicar los factores generales en la planificación de la capacidad generalmediante la preparación de pasos lógicos para el proceso de planificaciónde la capacidad general mediante el uso de factores de planificación generales. Para implementar los pasos, las ecuaciones matemáticas se han formulado de modo que los pasos y las ecuaciones se puedan usar de maneraútil en muchas empresas industriales, y se determinaron las necesidadesde capacidad tanto para el tiempo de trabajo directo, el tiempo de máquinay para cada tipo de producto y los períodos de tiempo que se especifican,así como se determinan las necesidades de capacidad de cada uno de loscentros de trabajo. Con el fin de aplicar la investigación, se eligió la fábricade prendas de cuero afiliada a Textile and Leather Industries Company, queproduce cuatro tipos de prendas de cuero (chaqueta de hombre, chalecode hombre, chaqueta de mujer y abrigo de mujer). El investigador realizómuchas visitas de campo y entrevistas para obtener los datos principales de

Rough-Cut Capacity Planning By Using the Overall Planning FactorsMethod: An Applied Study in the Leather Clothes Factory / Textile andLeather Industries Company2901la programación de la producción, así como datos históricos relacionadoscon las cantidades y tiempos de producción relacionados con la mano deobra directa y la máquina y para cada tipo de producto. La investigaciónconcluyó que la administración de la fábrica de prendas de cuero no estálogrando la preparación de la programación maestra de producción conprecisión, y tampoco está utilizando ningún método científico en la planificación de la capacidad general. La investigación también concluyó queel proceso de fabricación de prendas de cuero depende de los tiempos demano de obra directa, proporción que alcanzó a (0,69), mientras que lostiempos de la máquina alcanzaron (0,31). Por lo tanto, la investigaciónrecomienda preparar con precisión la programación maestra de producción, así como confiar en los factores de planificación generales en laplanificación de la capacidad general y, finalmente, el uso de máquinas amedida en el centro a medida que ayudará a reducir el tiempo requeridopara implementar el proceso a medida y, por lo tanto, reduce el tiempo defabricación.Palabras clave: programación maestra de producción, capacidad, planificación de la capacidad, planificación de la capacidad general, factores generales de planificación.1. IntroductionThe master production scheduling is considered as a segmentation of theaggregate production plan, for the master production scheduling is considered as an announcement of what the company expects to manufacturein terms of types and quantities of products in the specified dates. Thus,the master production scheduling makes it easier for us to realize what therequirements to be done are. Also, the review of the master productionscheduling is ensured that there are no clear capacity constraints requiredthe change of the scheduling. The master production scheduling details areusually on a monthly, weekly, or daily basis, and in order to implementthe master production scheduling, the capacity is required. The roughcut capacity planning includes the ensuring of the machinery availability,equipment facilities and workforce that exist with the required productionplans for the products that have been identified in the master productionscheduling. Therefore, the rough-cut capacity planning process requiresthe preparation to know the required resources that are producing eachproduct as well as the required capacity levels in each time period. Thereare several methods for rough-cut capacity planning, which are the capac-

Zahra Abd Mohammed2902Opcion, Año 35, Especial Nº 21 (2019): 2899-2921ity list, the resource portfolio, the overall Planning factors method thatfocus on the direct labor and machine time required by work centers. Theoverall Planning factors method relies on historical data related to the production quantities and production times of the direct labor and machinetimes so that the overall Planning factors can be calculated. It also requirespreparing the proposed master production scheduling for the coming period accurately.2. Research methodology2.1. Research problemThe decision of capacity planning is considered as one of the importantdecisions that industrial companies must pay sufficient attention to. Theresearch problem focused on how to accomplish rough-cut capacity planning by using overall Planning factors method through the preparation oflogical steps that included the formulation of mathematical equations toapply the steps.2.2. Research aimThe research aims to:1. Using overall Planning factors method in rough-cut capacity planning.2. Preparing logical steps for the process of using the overall Planningfactors method in rough-cut capacity planning.3. Formulating mathematical equations related to how to apply the steps ofusing the overall Planning factors method in rough-cut capacity planning.2.3. Research procedural schemeThe proposed research scheme has been prepared, for the purpose of applying the practical steps of using the overall Planning factors method inrough-cut capacity planning, and figure (1) shows the proposed researchschema.2.4. Research methods2.4.1. Field visits and interviewsSeveral interviews and field visits were conducted to the leather garmentfactory of the General Company for Textile and Leather Industries to getacquainted with the reality of production as well as capacity planning too.Several interviews were also held with the manager of the leather garment factory, besides the engineers and workers in the work centers. Thedirectors of marketing, research and development and of planning and fol-

Rough-Cut Capacity Planning By Using the Overall Planning FactorsMethod: An Applied Study in the Leather Clothes Factory / Textile andLeather Industries Company2903low-up departments in the company have been participated in these interviews, for the purpose of obtaining data and information related to theproduction quantities for previous periods, direct labor times, the times ofthe machine required in the manufacture of leather garment for previousperiods, and the time in work centers, as well as preparing the master production scheduling

Zahra Abd Mohammed2904Opcion, Año 35, Especial Nº 21 (2019): 2899-29212.4.2. Research toolFor the purpose of the rough-cut capacity planning by using the overallplanning factors method, several steps were presented besides the formulation of several equations to implement these steps. A program has beenused x- stata to perform calculations and the equations are:-3. Theoretical framework3.1. Master production scheduling

Rough-Cut Capacity Planning By Using the Overall Planning FactorsMethod: An Applied Study in the Leather Clothes Factory / Textile andLeather Industries Company2905The master production scheduling depends on the aggregate productionplan that unifies the product families in groups, and then these familiesare divided into individual types according to the desire of the customer (Dilworth, 2000:540). The master production scheduling provides thequantities and dates of the final products, and they are often stable in theshort term (one year to eight weeks). Moreover, the master productionscheduling is dependent on the product, market, and resource plans that areidentified in the aggregate production plan (Davis et.al, 2003:572).The master production scheduling is considered as a medium-term planthat takes into account the required lead times for ordering the raw materials, components, manufacture parts in the factory, assemble parts, andtesting of the final products depending on the type of product. These leadtimes can extend from several months to more than a year, and althoughthe master production scheduling deals with a medium-term horizon, it isa dynamic plan that is usually modified in the short term (Groover, 2010:962). The master production scheduling also defines the final elements thatthe company expects to manufacture every period, and consequently, thefinal elements are either finished products or elements including final assemblies (Benton, 2014, 78).The master scheduling time horizon depends, however, on the type ofproduct, the volume of production, the component’s lead time. It can beweeks, months, or a mixture, but the scheduling should usually extendlong enough in the future so that it could include the lead time for all components that have been purchased and adequately assembled (Kumar andSuresh, 2009: 203). The master production scheduling is working as a toolof senior management in controlling manufacturing resources. The development of the master production scheduling is no longer a simple taskbecause it requires studying the multiple goals such as reducing the inventory, achieving the maxim customer satisfaction, and maximizing the resource use. Therefore, the scheduler must ensure that the proposed masterproduction scheduling is valid and realistic for the implementation prior toits release to the actual manufacturing system (Radhika et.al, 2013: 164).The creation of master production scheduling includes the followingsteps:- (Benton, 2014: 103)1. Obtaining the necessary informational inputs.2. Preparing the initial draft of the main production scheduling.3. Developing the initial capacity requirements plan.4.If necessary, increase the capacity or review the initial draft of the masterproduction scheduling to obtain a meaningful scheduling.

Zahra Abd Mohammed2906Opcion, Año 35, Especial Nº 21 (2019): 2899-2921The master production scheduling (MPS) gives the formalization of theproduction plan and translates it into specific requirements for the finalproduct over a medium to short planning horizon. Thus, the end products are divided by the materials requirements planning system (MRP)and capacity requirements planning (CRP), and then the master productionscheduling leads the production system and inventory (Kumar and Suresh,2009: 202).3.2. Capacity PlanningThe capacity is defined as the maximum output that can be produced within a specified time period, such as a day, week, or year (Schroeder andGoldstein, 2018:217) or the maximum quantity any system can producewith current resources and at a specific time period (Dos, 2016:310) or itis the maximum load that the operating unit can handle, while the capacityplanning is considered the major strategic component for the system design (Stevenson,2018:188). Thus, the capacity planning is the set of managerial decisions that determine the general level of a company’s productiveresources, that is, it is the set of decisions that address the number of unitsthat the company must be able to process (Leseure,2010:93). Moreover,the capacity is influenced by product mixture, resource allocation, technology choice, and factory size (Russell and Taylor, 2011: 663).The primary goal of planning the production capacity to meet the demandis considered as the determination of the appropriate level of the productioncapacity, which is determined by selecting and determining the appropriatemixture of the machines, technological equipment, and required workforceto meet the expected future demand (Krajewski et.al, 2016: 156). The issueof capacity availability is not only a strategic issue but rather an issue centered in all operations, as it happens minute by minute, day by day, monthby month, etc. (Slack and Lewis, 2017: 122). The capacity will be at threelevels as shown in the table (1).

Rough-Cut Capacity Planning By Using the Overall Planning FactorsMethod: An Applied Study in the Leather Clothes Factory / Textile andLeather Industries Company2907The production managers are concerned with the capacity for the following reasons (Kumar and Suresh, 2009: 55):1. The required sufficient capacity to meet customers’ demand in a timelymanner.2. The capacity affects the cost- efficiency of operations.3. The capacity affects scheduling system.4. The capacity building requires investment.3.3. Rough-cut capacity planningAfter dividing the aggregate production plan into the master productionscheduling, it is necessary to verify the availability of the required capacity(raw materials, workforce, machines, and stores) to implement it throughthe rough-cut capacity planning (RCCP) (Smunt, 1996: 335).The rough-cut capacity planning is concerned with the determination ofthe labor requirements and necessary equipment to fulfill the master production scheduling. It is also interested in identifying the company’s futurelong-term capacity needs. The capacity planning is also working on determining the production resources constraints so that the main productionscheduling can be realistically planned. The realistic master productionscheduling must take into account the manufacturing capabilities of thefactory that makes the products. The company must also be aware of its

Zahra Abd Mohammed2908Opcion, Año 35, Especial Nº 21 (2019): 2899-2921production capacity and work to plan for the measures of changes in thecapacity in order to meet the changing production requirements set out inthe master production scheduling (Groover, 2010: 968),(Gaither and Frazier, 2002: 334).the rough-cut capacity planning (RCCP) has been defined by the Operations Management Association (APICS) as the process of converting themaster production scheduling into requirements for major resources, including labor, machines, warehouse capacity, suppliers capacity and manyother issues (Benton, 2014: 221).(Dilworth, 2000) defines it as a widely detailed method used to estimatemore accurately the required capacity to encounter the master productionscheduling (Dilworth, 2000:355). While (Reid and Sanders, 2011) definesit as the process of converting the master production scheduling into requirements for major resources such as labor and machine time (Reid andSanders, 2011: 759). Therefore, rough-cut capacity planning is a means ofidentifying the existed capacity in certain centers to implement the master production scheduling (White and Vondermbs, 2004: 291). The roughcut capacity planning methods focus on the planes of the detailed workcenters, therefore, it tries to verify the feasibility of the master productionscheduling (MPS) before implementing the work center plans (Benton,2014,: 221).The rough-cut capacity planning calculates an approximate estimate ofthe workload placed on vital resources by the proposed master productionscheduling. This workload compares with the demonstrated capacity ofeach critical resource, and this comparison enables the master scheduler to develop a feasible master production scheduling (Reid and Sanders,2013:806). The rough-cut capacity planning can also be accomplished byusing several methods, and the table (2) shows the opinions of the authorsand researchers.

Rough-Cut Capacity Planning By Using the Overall Planning FactorsMethod: An Applied Study in the Leather Clothes Factory / Textile andLeather Industries Company2909In this research, the overall planning factors method will be adopted, as itfits with the nature of the products of the research sample factory.3.4. Overall Planning Factors MethodThe capacity planning with overall Planning factors is the simplest wayto rough-cut capacity planning, and this depends on the planning factorsderived from the final products as well as on the planning factors derivedfrom the final products. The overall planning factors can be used successfully when products are homogeneous from a manufacturing standpoint(Jonsson and Mattisson,2002:1-2) and to determine the capacity requirements for each work center, the planning factor for each resource can bedeveloped on the basis of historical data. The planning factor shows therequired amount of resources for one integrated unit (Smunt,1996,339),(Reid and Sanders,2013:779) presented procedures related to overall planning factors:1. Determining the appropriate planning factors by using the historicaldata.2. Multiply the master production scheduling quantities according to theappropriate planning factor.3. The total capacity requirements for each resource according to the timeperiod.4. Assigning capacity requirements to individual work centers based onhistorical percentages.5. Dividing the workload in each supplier to verify the validity of the master production scheduling.The rough-cut capacity requirements can be expressed with the overallPlanning factors in terms of the number of units produced, machine hours,direct labor hours, product size, or product value (Jonsson and Mattisson,2002,5).The overall Planning factors are divided into two parts: direct labor andmachine times. The figure (2) shows overall Planning factors.

Zahra Abd Mohammed2910Opcion, Año 35, Especial Nº 21 (2019): 2899-29214. Practical framework4.1. Research sample description (leather garment factory)The State Company of Textile and Leathers Industries is one of the formations of the Ministry of Industries and Minerals. The leather garmentfactory was chosen as a sample for research, as this factory produces fourtypes of leather garment, which include men’s jacket, men’s vest, women’sjacket and women’s coat. In fact, the demand for leather garments is seasonal. The leather garment factory includes three work centers, which are:the tailor-made center, the sewing center, and the quality control center.The tailor-made process is done in the tailor-made center manually, whereas, the sewing center has two processes which one is related to the other,as for the folding process is done manually, while the sewing process isdepended on the machines. The work is done in the quality control centerfor final all products inspection manually. The figure (3) shows the working centers in the leather garment factory.4.2. Data processing and discussion1. Historical data collection for productsThe data has been collected on production quantities and times related tothe direct labor and machine that are required manufacturing the leathergarment for the past three years 2017, 2018, 2019. The table (3) shows thetypes of leather garment, the quantities of their production, and the timesof their manufacture for the three years.2. Historical data collection for work centersCollecting times related to direct labor and machine times required by each

Rough-Cut Capacity Planning By Using the Overall Planning FactorsMethod: An Applied Study in the Leather Clothes Factory / Textile andLeather Industries Company2911work center and for all products. The table (4) shows time in work centers.3. Prepare the master production schedulingthe researcher has done interviews with the directors of planning, follow-up, research and development departments, as well as the manager ofthe leather garment factory so that she could obtain a proposed accurateproduction scheduling of in order to obtain a proposed accurate productionschedule for the first quarter of 2020 (January, February, and March). Thetable shows (5) the proposed master production scheduling for the firstquarter of 2020.4. Calculating the overall planning factorsThe overall planning factors relating to direct labor, machine times, andthe four products can be calculated by the equation (1) and equation (2).Table (6) shows the overall Planning factors of the leather garment factory.

Zahra Abd Mohammed2912Opcion, Año 35, Especial Nº 21 (2019): 2899-29215. Calculating the workload for each product and for each time periodThe capacity needs include the direct labor and machine times for all products and for each time period, and as it follows:- Calculating the direct labor needs for each product and for each weekby multiplying the direct labor planning factor related to the product intothe quantities of the master production scheduling for that product andaccording to the equation (3). The table (7) shows the results of the directlabor hours that are required for each product for a period of (12) weeks.- Calculating the machine times needs for each product and for each weekby multiplying the machine times planning factor related to the productinto the quantities of the master production scheduling for that product andaccording to the equation (4). The table (8) shows the results of the machine times that are required for each product for a period of (12) weeks.6. Calculation of the total capacity needs for each time periodThe total capacity needs are calculated for each time period by adding theindividual capacity needs for each product, and as it follows:- The direct labor: the need of direct labor hours for all products during theweek are collected according to equation (5). The table (7) shows the totalcapacity needs for each time period.- The machine time: the machine time needs for all products during theweek are collected according to equation (6). The table (8) shows the totalcapacity needs for each time period.7. Calculation time percentage in work centersCollecting times related to direct labor and machine times required by eachwork center and for all products. The time percentage for each work centercan be calculated according to equation (7) and equation (8). The table (9)shows the time percentage in work centers.

Rough-Cut Capacity Planning By Using the Overall Planning FactorsMethod: An Applied Study in the Leather Clothes Factory / Textile andLeather Industries Company29138. Calculation of capacity needs for each work centerThe capacity needs for each work center can be calculated by calculationof the direct labor time only for all work centers, and of machine timesonly for all work centers and as it follows:- Calculating the need of the direct labor time for the work centersThe direct labor time needs for each work center is calculated according

Zahra Abd Mohammed2914Opcion, Año 35, Especial Nº 21 (2019): 2899-2921to equation (9) by multiplying the total direct labor for all products (thefour products) in each time period that was calculated in step (6) by thepercentage of each direct labor center that was calculated for the directlabor centers in step (7).- Calculating machine time need for work centersThe machine time need for each work center is calculated according toequation (10) by multiplying the total machine times for all products (thefour products) in each time period that was calculated in step (6) by thepercentage of each machine time center that was calculated for the machine time of the work centers in the step (7).In the leather garment factory, there are three work centers (tailor-made,sewing, and Quality Control), and the fact that the factory does not use atailor-made machine in the tailor-made center, and also does not use anyinspection device in the quality control center. Therefore, the ratio (0.26)represents the time of direct labor only in the tailor-made center just as theratio (0.10) represents the time of direct labor in the quality control center.As for the sewing center, the work is done manually as well as mechanically, and the percentage of direct labor time is (0.33), while the time ofthe machine is (0.31).The calculation of the capacity needs of the work centers in the leathergarment factory for each of the direct labor of the three centers, and themachine time for sewing work center, As shown in the table (10).Thus, the ratio of direct labor reached (0.69) of the total capacity need inall three work centers (tailor-made, sewing, and quality control) for allfour types of products, while the ratio of machine time reached (0.31) tothe sewing work center and for all four types of products.

Rough-Cut Capacity Planning By Using the Overall Planning FactorsMethod: An Applied Study in the Leather Clothes Factory / Textile andLeather Industries Company2915

Zahra Abd Mohammed2916Opcion, Año 35, Especial Nº 21 (2019): 2899-29215. ConclusionsThere are several methods for rough-cut planning, including the list ofcapacity, resource portfolio, and overall planning factors method. For theoverall planning factors method depends on historical data related to theproduction quantities of the products, as well as the direct labor times andthe machine times, it is considered as a simple method that can be applied in many industrial companies. The use of overall planning factorsrequires preparing a proposed master production scheduling for the periodfor which the factory wishes to plan the capacity. Much research has addressed the capacity planning by using overall planning factors, but without providing detailed steps on how to use these overall planning factors inthe rough-cut capacity planning. Therefore, this research aims to providelogical steps for the rough-cut capacity planning process by using overallplanning factors, so that it helps factory managers and production plannersin many industrial companies to determine capacity requirements for bothdirect labor times and machine times, for many types of products and therequired time periods, so that these steps can be applied by formulatingten mathematical equations. The research also confirms that the masterproduction scheduling must be accurate so that the results of capacity planning can be accurate too. The current research also shows that all workcenters do not include the direct labor time and machine time together. Awork center may depend on the direct labor or machine time, dependingon the method used to manufacture the products in factory. The researchersuggests tabulating the steps to reach the results as a package using a program R language.References1. Benton, W. C. (2014), Supply Chain Focused Manufacturing Planningand Control, Cengage Learning, U.S.A.2. Das, A. (2016), An international to Operations Management, 1st editionRoutledge Taylor &Francis Group, New York.3. Davis, M., Aquilano, N. J., and Chase, R. B.,(2003), Fundamentals ofOperations Management, 4th ed., McGraw – Hill Irwin, New York.4. Dilworth, J. B.,(2000), Operations Management: Providing Value inGoods and Services, 3rd ed., Harcourt, Inc., College Publishers, New York.5. Gaither, N and Frazier, G, (2002), Operations Management, 9th ed.,South – Western Thomson, U.S.A.6. Groover, M.P (2010), Fundamentals of Modern Manufacturing: Materi-

Rough-Cut Capacity Planning By Using the Overall Planning FactorsMethod: An Applied Study in the Leather Clothes Factory / Textile andLeather Industries Company2917als, Proce

research problem focused on how to accomplish rough-cut capacity plan-ning by using overall Planning factors method through the preparation of logical steps that included the formulation of mathematical equations to apply the steps. 2.2. Research aim The research aims to:-1. Using overall Planning factors method in rough-cut capacity planning. 2.

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